governance Archives - Page 16 of 30

Transformative land investment: How do environmental, social, governance and societal standards add up?

Key messages

With growing concern over climate, biodiversity and food crises, there is a proliferation of standards, guidelines and principles (simplified here as “standards and guidelines” or just “standards”) aimed at addressing environmental, social, governance and broader societal challenges (the “pillars” of transformative change).
Across these challenges, different standards and guidelines have multiple priorities and varying concepts of what each pillar encompasses.
Few initiatives acknowledge or incorporate all four pillars, thereby increasing the potential risk of harm by neglecting trade-offs and overlooking the need for understanding and promoting systemic change.
Although it is not possible for every standard to “do everything”, investors should identify, assess and plan for the potential consequences and trade-offs; otherwise, “green” projects could impoverish smallholders, and livelihood projects could ignore sustainability, with long-term consequences for both.
Transformative change in food systems requires investor models that ensure a positive impact, where environmental stewardship, social inclusion, governance and societal issues become part of how investors do business.

Land investment standards and guidelines: An overview in light of the need for food systems transformation

We reviewed and analysed global standards and other guidelines and principles related to land investment. Here’s the summary in which we consider a wide range of efforts to set norms for land investment that include standards, guidelines, principles, frameworks and regulations. For simplicity, we refer to them all generically as “standards and guidelines”, or sometimes just “standards”. Also look out for the two forthcoming briefs that analyse alignment across the ‘pillars’ of transformation and present trends in transnational governance.

Value chain analysis for community livelihoods in peatlands: A case study in Southern Riau

Many of the Indonesian peatlands have been cleared of forest, then drained and burned for both large- and small-scale agricultural crop development. This has resulted in regular occurrences of haze from peatland fires during the dry season. Peatlands have long been a livelihood source providing up to 80% of earnings for nearby local communities. Nevertheless, many such communities apply unsustainable practices involving the use of fire for land preparation and drainage of wet healthy peatland ecosystems. For that reason, haze-free sustainable livelihoods need to be found immediately. This research analysed commodities traded in local markets as well as those with the potential for trade that could be grown in targeted villages. We collected data through market observations, focus group discussions and key informant interviews in nine targeted villages. Using Value Chain Analysis (VCA) methods, we analysed and assessed each commodity for their value chain distribution and governance, and power relations. The results of these assessments indicate that pineapple, areca nut, honey and fish are financially viable for generating income throughout the year and have fewer environmental impacts. These commodities have potential for consideration as alternatives in lieu of oil palm, which requires peatland drainage and often use of fire.

Green consumer behaviour influences Indonesian palm oil sustainability

Palm oil businesses affect livelihoods and the environment, particularly forests, with land-use change and climate change impacts. This research aimed to develop a model for understanding the influences of global trade and political economy factors on palm oil sustainability and livelihoods in Indonesia. It combined systematic review with structural equation modelling through a model called POPETS (Palm Oil Political Economy and Trade Structural equation model). The study revealed that palm oil sustainability is defined by employment opportunities and no deforestation, while livelihoods are defined by household income. Trade and political economy factors (structures, institutions and actors) significantly influence the sustainability of palm oil. Trade has indirect effects on sustainability and livelihoods, while actors have a direct effect on sustainability. There is also a positive correlation between sustainability and livelihoods. These findings suggest the importance of synergizing global trade effects and national government roles to advance palm oil sustainability in the producing countries.

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